TENNESSEE HARVESTER CORPORATION Partial Bond Amortization Schedule Cash Payment Effective Interest Increase in Balance Payment 1 2 3 4 5 6 320,000 320,000 320,000 320,000 320,000 320,000 331,364 331,932 332,528 333,155 333,813 334,503 11,364 11,932 12,528 13,155 13,813 14,503 Outstanding Balance 6,627,273 6,638,637 6,650,569 6,663,097 6,676,252 6,690,065 6,704,568 38 39 40 320,000 320,000 320,000 389,107 392,562 396,191 69,107 72,562 76,191 7,851,247 7,923,809 8,000,000 Interest paid semiannually on June 30 and December 31. TENNESSEE HARVESTER CORPORATION Requirement 1: What is the face amount of the bonds? Requirement 2: What is the initial selling price of the bonds? Requirement 3: What is the term to maturity in years? Requirement 4: Interest is determined by what approach? At the effective interest rate (By the altemative straight-ine approach, interest would be the same amount each period.) Requirement 5: What is the stated annual interest rate? Requirement 6: What is the effective annual interest rate? Requirement 7: What is the total cash interest paid over the term to maturity? Requirement 8: What is the total effective interest expense recorded over the term to maturity